Bitcoin’s price is teetering on the edge of a precipice, with the critical $60,000 support level holding the line against a potential flash crash to $40,000.
Despite a weakening US dollar and anticipation of Fed rate cuts, Bitcoin continues its descent, fueled by declining demand and critical remarks from prominent figures like Peter Schiff.
This raises a crucial question for Bitcoin price prediction: Will the current bearish momentum lead to a significant market correction, or can Bitcoin rebound from this critical juncture?
Schiff Sounds Alarm on Bitcoin’s Underperformance
Peter Schiff, a well-known Bitcoin skeptic, is raising concerns about Bitcoin’s recent performance.
- Q2 Underperformance: Bitcoin fell over 15%, while gold rose 4%.
- Investor Warning: Schiff cautions those who switched from gold to Bitcoin ETFs, highlighting potential for further losses.
Bitcoin’s recent 14% drop from its yearly peak to $60,800 fuels Schiff’s skepticism. While analysts still see an overall upward trend, reduced demand (23,000 Bitcoin outflow last month) raises concerns.
Schiff’s remarks, coupled with the decreased demand, contribute to the current market sentiment and suggest potential downside risks.
Bitcoin’s Price Dip: Is Waning Demand the Culprit?
CryptoQuant analyst Julio Moreno attributes Bitcoin’s recent price correction to a notable decrease in demand. He points to a key metric:
- Inactive Supply Outflow: 23,000 Bitcoins that hadn’t moved in over a year were recently sold, indicating waning investor interest.
This increased supply, coupled with insufficient buying activity, is driving prices downward. Factors like overall market sentiment and the recent launch of US Bitcoin ETFs further complicate the situation.
Moreno’s analysis underscores the crucial role of demand in shaping Bitcoin’s market dynamics. The question now is whether this trend will continue or if renewed demand will emerge to stabilize and potentially boost Bitcoin’s price.
Mixed Economic Signals: A Tug-of-War for Bitcoin and the US Dollar
Recent US economic indicators paint a complex picture:
- Fed Officials Cautious: Despite a weakening US dollar and growing expectations of rate cuts in 2024, Fed officials remain cautious about the economy’s future.
- Inflation Stable: May’s US PCE data indicates steady inflation, while consumer sentiment slightly improved in June.
While the anticipation of a September rate cut has weakened the US dollar, Bitcoin has failed to capitalize on this trend, continuing its downward trajectory.
Bitcoin Price Prediction
Bitcoin (BTC) is currently trading at $60,686 as of June 30, 2024, on the 4-hour chart, suggesting a bearish Bitcoin price prediction. The cryptocurrency is exhibiting a bearish bias, trading within a descending triangle pattern.
The Relative Strength Index (RSI) currently stands at 42.82, indicating an oversold condition and suggesting a potential price rebound.
However, the 50-day Exponential Moving Average (EMA) at $62,231 is acting as a significant resistance level, limiting Bitcoin’s upward movement.
Key support levels to watch are $59,922 and $58,430. If Bitcoin breaks below $59,922, it could signal further declines.
Conversely, a break above the $62,231 resistance level would invalidate the bearish outlook and potentially pave the way for a bullish reversal.
Traders are advised to closely monitor price action around these key levels for potential trading opportunities.
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The post Bitcoin Price Prediction: With BTC at $60,000 Support, Could a Flash Crash to $40,000 Happen? appeared first on Cryptonews.
